Opinion Contributor

Cut federal costs - and risks

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Unleash competition. Federal agencies buy satellites tethered to unique ground stations and software. But costs and risks of single-point failure can be cut with separate bids for ground station processing -- for which more companies can compete -- and by using common interface software.

Share resources. Until recently, federal agencies considered the shared data centers common in business as too risky. Cloud computing now lowers the costs and new security technology reduces risks – but only if agencies update rules designed to protect older systems. New technology also allows integrated ground architectures at space launch complexes, so equipment can be shared without raising risk.

Assure identity. Many government identity documents, like Social Security cards, can easily be forged or misused. Now employers can use E-Verify, an Internet-based system, to check eligibility of new workers. A new permanent resident card – or green card – has increased security features. Better documents and accessible ways to verify entitlements can reduce the fraud and the cost of providing services to ineligible persons.

Improve the workforce. Starting in the 1990s, the federal acquisition workforce was cut by more than half, even as the value of contracts more than doubled. These specialized workers are over-burdened, which can mean cost-overruns and delays in programs. One example is the expensive, now-canceled Future Combat Systems program, for which the Army allowed contractors to have far too much oversight responsibility.

Upgrade incrementally. Improving existing equipment and training can be cost-effective when budgets are tight. Discretionary money, however, is too often diverted to fund other shortfalls. Many agencies use older, disparate business systems which cannot talk to one another and are vulnerable to cyber threats. This is costly and risky.

In World War II in the North Atlantic, Nazi U-Boats sunk hundreds of merchant ships meant to relieve besieged Britain. Washington adopted a new risk management strategy, to cluster vessels in convoys and protect them with warships. It saved lives and money.

Today federal leaders ought to show similar ingenuity by eschewing politics and using informed management strategies to cut costs to taxpayers and risks to government.

Jose Jimenez leads public sector strategy for Computer Sciences Corporation (CSC). William Courtney is a strategist with CSC and served as U.S. ambassador to Kazakhstan and Georgia.

Contractors contracts can be terminated if the performance is unsatisfactory and the taxpayer has no long term obligation to the employees.

Public employees on the other hand are very difficult to fire and Federal programs never get terminated. When their performances is poor, they blame it on inadequate funding and then get more federal money. The taxpayers are on the hook for not only their lavish salaries when compared to the private sector but their lavish retirements forever. A government employee is a Union employee.

The federal budget is littered with examples of failed outsourced projects that squandered billions of taxpayer money on incompetently managed projects, especially in the IT arena. At the core of every one of these failures was a private company that overpromised, underdelivered, took the money and ran away to do the same thing somewhere else.

Just look at the hundreds of billions in dollars of cost overruns and unmet requirements in DOD weapons systems, the Coast Guard Deepwater project where the contractor produced cutters that could break in two in a storm. Today's example of contractor failure is the Arlington Cemetery records project where DOD spent millions to a private contractor for a failed records management system that doesn't work. The Cemetery must still rely on paper records to keep track of burials sites, with the end result being that possibly 6,600 graves are mismarked or unmarked.

The government needs to insource more work and develop its own capabilities and leave the private sector to what it does best--pick up trash, operate cafeterias with bad food and mow the lawns. We have had 20 years of greedy capitalists trying to convince the public that if only they ran the government, things would be better. The only things that gets better with outsourcing are corporate profits and private sector executive pay.

Peter Orszag, outgoing director of the Office of Management and Budget, said Wednesday that making government work better is “crucial” for it to be efficient and responsive. One important step could be to make better use of private contractors in cutting both costs and risks to government and the taxpayer.

No wonder Peter was shoved out of the White House!

Using Peter's reasoning We could dump the USPS and give it to Fed Ex and Walmart We could dump the Dept of Education altogether We could dump the EPA since its based on phoney algor type science. We could dump HUD which cannnot control our borders - We could commission the "minutemen and Joe Arpaio" to run the show.

All we would need would be a party pad for Obama and a golf course nearby.